According to Infonetics, which has just published its M2M Strategies by Vertical: North American Enterprise Survey, it all boils down to competition. The researchers have been looking at the drivers, barriers, plans, and service provider selection criteria of enterprises in five market segments: automotive and logistics; utility; retail; healthcare; and public safety and surveillance.
"So much of the discussion surrounding M2M has been focused on connections, but whether it is 20 billion, 30 billion, or 50 billion, there's no question that number is going to be huge. What hasn't been as clear is why this is happening. Why are enterprises buying M2M services?," says Godfrey Chua, directing analyst for M2M and connected world at Infonetics Research.
"We asked enterprises what's driving their decisions to adopt M2M services, and the number-one factor is the never-ending pursuit of competitive advantage.
“As technologies continue to evolve and prices come down, enterprises will increasingly turn to M2M to lower operating costs, differentiate their brands, and create new revenue opportunities."
Infonetics found that the majority of enterprises surveyed expect the need for M2M services to increase over the coming year, validating the assumption made by the top global service providers (Vodafone, AT&T, Verizon, Orange, and Telefonica) that M2M will be a key growth area for their businesses.
And they place network quality as the top criteria for M2M service provider selection.
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